Using Financial Ratios to Identify Romanian Distressed Companies
Portfolio Management
2010-01-12 v1 Computational Engineering, Finance, and Science
Genomics
Abstract
In the context of the current financial crisis, when more companies are facing bankruptcy or insolvency, the paper aims to find methods to identify distressed firms by using financial ratios. The study will focus on identifying a group of Romanian listed companies, for which financial data for the year 2008 were available. For each company a set of 14 financial indicators was calculated and then used in a principal component analysis, followed by a cluster analysis, a logit model, and a CHAID classification tree.
Keywords
Cite
@article{arxiv.1001.1446,
title = {Using Financial Ratios to Identify Romanian Distressed Companies},
author = {Madalina Ecaterina Andreica and Mugurel Ionut Andreica and Marin Andreica},
journal= {arXiv preprint arXiv:1001.1446},
year = {2010}
}
Comments
ISSN: 1454-0320